Employers of Part-Timers Most Affected by ACA Costs

August 8, 2012 (PLANSPONSOR.com) - The Patient Protection and Affordable Care Act (PPACA) will affect some employers far more than others, according to a survey.

When asked to estimate the cost impact of the key provisions that go into effect in 2014, a recent survey of 1,203 employers conducted by Mercer found that 60% expect some increase in cost; one-third of those expect an increase of 5% or more.

The employers that will be hit hardest are those with large part-time populations – employers in retail and hospitality services. Nearly half of these employers (46%) expect PPACA will push up cost by at least 3% in 2014 – and another third do not yet know what the impact will be.

Employers in the health care industry are also more likely to expect sharp cost increases (40% expect a cost impact of at least 3%). By contrast, just 31% of respondents in service industries expect that PPACA provisions will result in increases of this size.